The U.S. Federal Bureau of Investigation (FBI) has identified North Korea as the orchestrator of a record-breaking $1.5 billion cryptocurrency heist from Dubai-based crypto exchange Bybit.
The attack, which took place on February 19, is the largest digital asset theft ever recorded.
In a public statement on Thursday, the FBI disclosed that the stolen funds are being rapidly laundered and converted into Bitcoin and other virtual assets, spread across thousands of blockchain addresses.
The agency attributed the attack to a North Korean cybercrime syndicate operating under the alias “TraderTraitor.”
“TraderTraitor actors are proceeding rapidly and have converted some of the stolen assets to Bitcoin and other virtual assets dispersed across thousands of addresses on multiple blockchains,” the FBI stated. “It is expected these assets will be further laundered and eventually converted to fiat currency.”
The heist underscores growing concerns over state-sponsored cybercrime and its implications for the cryptocurrency market.
North Korea has been linked to several high-profile cyberattacks in recent years with digital asset theft serving as a key revenue stream for the regime.
Bybit, in response to the breach, has launched an extensive effort to track and recover the stolen assets. The company has offered a bounty for information leading to the retrieval of the funds and has implemented an online system to trace and freeze illicit transactions.
Ben Zhou, Bybit’s chief executive, reaffirmed the company’s commitment to transparency in combating cybercrime.
“We are taking a stand to ensure that every transaction is visible and every hacker is held accountable,” Zhou said. “Our multi-pronged offensive is a clear message: if you steal, you will be found, and justice will be swift.”
The FBI has urged cryptocurrency platforms and financial institutions to be on high alert for suspicious transactions linked to the stolen funds.
The agency also warned that digital assets could be funneled through illicit channels before being converted into government-issued fiat currency.
The incident adds to a series of cyberattacks attributed to North Korean state-sponsored hacking groups. U.S. authorities continue to monitor developments closely as efforts intensify to disrupt the laundering process and mitigate further security risks within the cryptocurrency sector.
